PLAINVIEW, N.Y.--(BUSINESS WIRE)--April 28, 2008--Veeco
Instruments Inc. (Nasdaq: VECO) today announced its financial results
for the first quarter ended March 31, 2008. Veeco reports its results
on a generally accepted accounting principles ("GAAP") basis, and also
provides results excluding certain items. Investors should refer to
the attached table for details of the reconciliation of GAAP operating
income to earnings excluding certain items.
Veeco will host a conference call reviewing these results at 5:00
pm EDT today at 1-877-723-9511 (toll free) or 1-719-325-4791. The call
will also be webcast live on the Veeco website at www.veeco.com. A
replay of the call will be available beginning at 8:00pm EDT through
midnight on May 13, 2008 at 888-203-1112 or 719-457-0820, using
passcode 3406596, or on the Veeco website. Please also see the Veeco
website for a slide presentation reviewing financial data.
First Quarter 2008 Highlights
-- Revenue was $102.3 million, in line with Veeco's guidance of
$98-$105 million;
-- Bookings were $109.3 million, in line with Veeco's guidance of
$105-$112 million;
-- Net loss was ($1.6) million, or ($0.05) per share, compared to
net income of $0.3 million, or $0.01 per share, last year. The
current quarter net loss includes a restructuring and asset
impairment charge of $3.2 million principally related to the
consolidation and relocation of Veeco's Corporate headquarters
in the first quarter.
-- Veeco's earnings per share, excluding certain items, was $0.09
compared to earnings per share of $0.10 last year, ahead of
Veeco's guidance of $0.00-$0.06 per share.
John R. Peeler, Veeco's Chief Executive Officer, commented, "We
are pleased to report in-line revenues and better than expected
earnings due to our restructuring and cost containment efforts and
better than anticipated gross margins, up sequentially from 37.9% to
41.7%. We are on track to improve Veeco's performance on both the top
and bottom line in 2008."
"Veeco's LED & Solar Process Equipment business reported revenues
of $42.1 million and EBITA of $8.6 million, now representing our
largest segment at 41% of revenues. These results were significantly
improved both on a year-over-year and sequential basis. In Data
Storage Process Equipment, while we reported a weak revenue quarter as
expected, our bookings increased to over $40 million, driven by
increased capital expenditures and technology spending by key hard
drive customers. We also reported a sequential recovery in the
profitability of our Metrology business. Bookings in Metrology were
weak due to slow scientific research/industrial spending which
impacted our instruments products, and continued semiconductor
industry softness."
First Quarter 2008 Summary
Veeco's revenue for the first quarter of 2008 was $102.3 million,
compared to $99.2 million in the first quarter of 2007. First quarter
2008 operating income was $0.1 million, which includes the previously
noted $3.2 million in restructuring and asset impairment charges,
compared with operating income of $1.7 million in the first quarter of
2007. Veeco's first quarter 2008 earnings before interest, taxes and
amortization excluding certain charges (EBITA) was $5.3 million,
compared to $5.6 million last year. First quarter 2008 net loss was
($1.6) million, or ($0.05) per share, compared to net income of $0.3
million, or $0.01 per share, in the first quarter of 2007. Excluding
restructuring, asset impairment and amortization expenses and using a
35% tax rate in both periods, first quarter 2008 earnings per share
were $0.09, compared to $0.10 in 2007.
Outlook
The Company forecasts second quarter 2008 revenues to be in the
range of $102-$110 million. Veeco's earnings per share is currently
forecasted to be between $(0.02) - $0.07 on a GAAP basis, and earnings
per share are currently forecasted to be between $0.05 to $0.11 on a
non-GAAP basis (excluding amortization of $2.0 million and using a 35%
tax rate). Veeco currently expects that its second quarter 2008
bookings will be greater than the first quarter, with a range of
$110-$118 million. The Company currently anticipates sequential
bookings increases in the LED & Solar Process Equipment and Metrology
segments. For the full year, Veeco reaffirms its guidance of revenue
growth at a minimum of 10% to $440 million.
About Veeco
Veeco Instruments Inc. manufactures enabling solutions for
customers in the HB-LED, solar, data storage, semiconductor,
scientific research and industrial markets. We have leading technology
positions in our three businesses: LED & Solar Process Equipment, Data
Storage Process Equipment, and Metrology Instruments. Veeco's
manufacturing and engineering facilities are located in New York, New
Jersey, California, Colorado, Arizona and Minnesota. Global sales and
service offices are located throughout the U.S., Europe, Japan and
APAC. http://www.veeco.com/
To the extent that this news release discusses expectations or
otherwise makes statements about the future, such statements are
forward-looking and are subject to a number of risks and uncertainties
that could cause actual results to differ materially from the
statements made. These factors include the risks discussed in the
Business Description and Management's Discussion and Analysis sections
of Veeco's Annual Report on Form 10-K for the year ended December 31,
2007 and in our subsequent quarterly reports on Form 10-Q, current
reports on Form 8-K and press releases. Veeco does not undertake any
obligation to update any forward-looking statements to reflect future
events or circumstances after the date of such statements.
Veeco Instruments Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three months ended
March 31,
---------------------
2008 2007
---------- ----------
Net sales $102,307 $99,166
Cost of sales 59,681 55,471
---------- ----------
Gross profit 42,626 43,695
Operating expenses:
Selling, general and administrative expense 22,628 22,806
Research and development expense 14,726 15,389
Amortization expense 1,956 3,909
Restructuring expense 2,875 -
Asset impairment charge 285 -
Other expense (income), net 4 (147)
---------- ----------
Operating income 152 1,738
Interest expense, net 892 819
Gain on extinguishment of debt - (738)
---------- ----------
(Loss) income before income taxes and
noncontrolling interest (740) 1,657
Income tax provision 919 1,494
Noncontrolling interest (76) (130)
---------- ----------
Net (loss) income ($1,583) $293
========== ==========
(Loss) income per common share:
Net (loss) income per common share ($0.05) $0.01
Diluted net (loss) income per common share ($0.05) $0.01
Weighted average shares outstanding 31,161 30,899
Diluted weighted average shares outstanding 31,161 31,281
Veeco Instruments Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2008 2007
----------- ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 114,429 $117,083
Accounts receivable, net 76,753 75,207
Inventories, net 105,169 98,594
Prepaid expenses and other current assets 7,739 8,901
Deferred income taxes 2,929 2,649
----------- ------------
Total current assets 307,019 302,434
Property, plant and equipment, net 65,661 66,142
Goodwill 100,898 100,898
Other assets, net 58,382 59,860
----------- ------------
Total assets $ 531,960 $529,334
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 38,101 $ 36,639
Accrued expenses 55,883 60,201
Deferred profit 4,330 3,250
Income taxes payable 2,066 2,278
Current portion of long-term debt 25,418 25,550
----------- ------------
Total current liabilities 125,798 127,918
Deferred income taxes 4,351 3,712
Long-term debt 120,987 121,035
Other non-current liabilities 3,026 1,978
Noncontrolling interest 938 1,014
Shareholders' equity 276,860 273,677
----------- ------------
Total liabilities and shareholders' equity $ 531,960 $529,334
=========== ============
Veeco Instruments Inc. and Subsidiaries
Reconciliation of operating income to earnings excluding certain items
(In thousands, except per share data)
(Unaudited)
Three months ended
March 31,
-------------------
2008 2007
-------- --------
Operating income $ 152 $ 1,738
Adjustments:
Amortization expense 1,956 3,909
Restructuring expense 2,875 (1) -
Asset impairment charge 285 (2) -
-------- --------
Earnings before interest, income taxes and
amortization excluding certain items ("EBITA") 5,268 5,647
Interest expense, net 892 819
Gain on extinguishment of debt - (738)(3)
Adjustment to exclude gain on extinguishment of
debt - 738
-------- --------
Earnings excluding certain items before income
taxes 4,376 4,828
Income tax provision at 35% 1,532 1,690
Noncontrolling interest, net of income tax
provision at 35% (49) (85)
-------- --------
Earnings excluding certain items $ 2,893 $ 3,223
======== ========
Earnings excluding certain items per diluted
share $ 0.09 $ 0.10
Diluted weighted average shares outstanding 31,301 31,281
(1) During the first quarter of 2008, the Company recorded a
restructuring charge of $2.9 million, consisting of $2.6 million of
costs associated with the consolidation and relocation of the lease
for our Corporate headquarters, and $0.3 million of personnel
severance costs.
(2) During the first quarter of 2008, the Company recorded a $0.3
million asset impairment charge related to fixed asset write-offs
associated with the consolidation and relocation of our Corporate
headquarters.
(3) During the first quarter of 2007, the Company repurchased $56.0
million aggregate principal amount of its 4.125% convertible
subordinated notes. As a result of these repurchases, the Company
recorded a gain from the early extinguishment of debt in the amount
of $0.7 million.
NOTE - The above reconciliation is intended to present Veeco's
operating results, excluding certain items and providing income taxes
at a 35% statutory rate. This reconciliation is not in accordance
with, or an alternative method for, generally accepted accounting
principles in the United States, and may be different from similar
measures presented by other companies. Management of the Company
evaluates performance of its business units based on EBITA, which is
the primary indicator used to plan and forecast future periods. The
presentation of this financial measure facilitates meaningful
comparison with prior periods, as management of the Company believes
EBITA reports baseline performance and thus provides useful
information.
Veeco Instruments Inc. and Subsidiaries
Segment Revenues, Bookings, and Reconciliation
of Operating Income (Loss) to EBITA
(In millions)
(Unaudited)
----------------------------------------------------------------------
Three months ended
March 31, March 31,
------------------------------------
2008 2007
----------------------------------------------------------------------
LED & Solar Process Equipment
Bookings $ 38.7 $ 36.4
Revenues 42.1 22.4
Operating income (loss) 8.1 (0.5)
Amortization expense 0.5 2.3
------------------------------------
EBITA 8.6 1.8
----------------------------------------------------------------------
Data Storage Process Equipment
Bookings 40.6 32.3
Revenues 24.1 35.7
Operating (loss) income (2.6) 1.4
Amortization expense 1.0 1.0
Restructuring expense 0.1 -
------------------------------------
EBITA (1.5) 2.4
----------------------------------------------------------------------
Metrology
Bookings 30.0 37.2
Revenues 36.1 41.1
Operating income 1.2 3.6
Amortization expense 0.4 0.4
Restructuring expense 0.2 -
------------------------------------
EBITA 1.8 4.0
----------------------------------------------------------------------
Unallocated Corporate
Operating loss (6.6) (2.8)
Amortization expense 0.1 0.2
Restructuring expense 2.6 -
Asset impairment charge 0.3 -
------------------------------------
EBITA (3.6) (2.6)
----------------------------------------------------------------------
Total
Bookings 109.3 105.9
Revenues 102.3 99.2
Operating income 0.1 1.7
Amortization expense 2.0 3.9
Restructuring expense 2.9 -
Asset impairment charge 0.3 -
------------------------------------
EBITA $ 5.3 $ 5.6
----------------------------------------------------------------------
** Refer to footnotes on Reconciliation of operating income to
earnings excluding certain items
CONTACT: Veeco Instruments Inc.
Financial:
Debra Wasser, 516-677-0200 x1472
SVP Investor Relations & Corporate Communications
or
Media:
Fran Brennen, 516-677-0200 x1222
Senior Director Marcom
SOURCE: Veeco Instruments Inc.